$METC reports strong Q4 and full-year 2022 results and optimistic outlook
Mar 8th 2023, 9:51 pm
Analyst Summary: Ramaco Resources Inc.'s Q4 and full-year 2022 financial results showed strong growth, with almost three times greater Adjusted EBITDA than in 2021. The company was able to generate increasing amounts of free cash flow, initiated its inaugural base dividend and doubled it promptly. The firm's marketing team was able to book significant new metallurgical sales, and around two-thirds of the total sales this year will be index priced exports to take advantage of strengthening markets. The company also created a charity foundation, Ramaco Foundation. Overall, Ramaco has been able to achieve significant growth over the past five years, and management aims to continue executing their plan by increasing production and processing capacity, with no future acquisitions planned. Nonetheless, the company has faced some operational setbacks in 2022, with an external ignition incident at their Berwind mine and continued transportation issues. The company is hopeful that, thanks to operational changes at their railroad partners, logistics will return to a more normalized cadence in the coming year. Despite these past issues, 2023 is poised to be a transformational year for Ramaco, and met coal markets and pricing have already strengthened. Management expects to increase production and earnings throughout the year, starting in the second quarter. The company expects to pay down the majority of its remaining debt, maintain a strong balance sheet, and continue to pursue their dual longer-term objectives of increasing profitable production while steadily growing return capital to their shareholders. It is worth noting that forward-looking statements were made in this release.